The Genesis of a Digital Superpower: The History, Evolution, and Development of E-Commerce in China (1994-2018)

Author

Shikha Shaurya

Abstract

 This paper analysed the origin and evolution of e-commerce in China within the global context of e-commerce. The 38th Statistical Report on Internet Development in China explains the rise of Electronic Data Interchange (EDI) and its role in e-commerce. It also briefly examines the international framework in the field, the UNCITRAL framework, and the 1998 WTO recognition of e-commerce in Geneva. It studies the origin and development of the e-commerce ecosystem in China: the entry of the internet in 1994, utilisation of the Great Firewall and the rise of homegrown Chinese firms, early pioneers, the landmark year 1998 (8848, Alibaba, Joyo), the challenges of 2000 noted in CNNIC reports, the policies of 2002 and 2004, the Five-Year Plans, etc. After examining the broader effects of e-commerce, the paper presents market data: growth (CAGR) from 2003 to 2011, when China overtook the major international actor to rank second after the United States. It looks at data on broadband accounts (in 2011), internet penetration, and GDP, with Beijing, Shanghai, and Guangdong leading the way; country-wise spending in 2010 and 2013, with China ranking fifth; e-commerce sales from 2006 to 2016; cross-border trade from 2008 to 2015; and fresh e-commerce, which increased from 4.05 billion yuan in 2012 through 2020. The study comes to the conclusion that China has become a major e-commerce industry due to supporting policies, quick internet penetration, and a robust domestic platform ecosystem.

Keywords

e-commerce, China, EDI, digital economy, Alibaba, fresh e-commerce, cross-border e-commerce, CNNIC

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